Galactica.

Essay by LiLPoodleUniversity, Master'sA+, August 2003

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Galactica

Galactica book publishing company is looking to hire people in their sales department. Brenda Crohn, the recruiting director, and John Stubbins, the vice president of marketing, have different ideas about how to find qualified applicants. Crohn's aim is to attract the more qualified candidates through their usual trade journal ads. Stubbins wants to attract applicants through the internet, which generates a larger quantity of applicants rather than quality. The disagreement has resulted in a heated argument which needs to be resolved.

There are many facts in this case which could be of importance to the decision:

The company publishes text books

The trade journal ads generate 1.2 applicants per ad and the cost per add is 59 dollars.

Trade journal ads also have a 50 percent hiring rate of all applicants.

Internet Ads generate 3.9 applicants per ad and cost 154 dollars per ad.

Internet ads also have a 33 percent hiring rate of all applicants.

Crohn is the recruiting agent.

Stubbins is the marketing vice president.

If calculations are done there are additional facts:

(Based on 100 ads)

Trade Journal ads

100 X \$5 = \$5900 cost

100 X 1.2 = 120 applicants

50% of 120 = 60 hired

\$5900/120 = \$49 cost to attract one applicant

\$5900/60 = \$98 cost to find one qualifying applicant

Internet ads

100 X \$154 = \$15400 cost

100 X 3.9 = 390 applicants

33% of 390 =129 hired

\$15400/390 = \$39 cost to attract one applicant

\$15400/129 = \$119 cost to find one qualifying applicant

The problem is how does Galactica go about gathering the best possible number of applicants? If there is only a 20 percent success rate in their hiring process then maybe it is time for a change.

There are many solutions to this problem, but we can...